many sevenning now. >> bret: my nephew is serving, marine right now. >> dana: where is he? [ inaudible ] >> dana: we love them all. that is it for us on "the five." don't forget to buy greg's book. comes out tomorrow. bye. >> bret: sex, power, betrayal, rivalry. and international intrigue. good evening, i'm bret baier. it's as if someone ordered a scandal and decided to supersize it. the affair that forced the resignation of general david petraeus as the c.i.a. director is hub of a wheel with spokes streaming out in all directions. from how it was discovered to the relationship with the terror attack in libya. it's the story expanding exponentially tonight. we have fox news coverage. chief intelligence correspondent catherine herridge has the latest on the nuts and bolts of the investigation. we begin with the national

security correspondent jennifer griffin on the connection between petraeus, aed mistress paula broadwell, and the benghazi attacks. good evening, jennifer. >> good evening, bret. close friends of general david petraeus tell us he is devastated and deeply embarrassed by how much pain he has caused his family and friends. general petraeus told friends the affair was his biographer paula broadwell that started two months after he left the military around the same time he took over at the c.i.a. september 2011. though they spent nearly a year together in afghanistan while she researched his biographer. all in. the education of david petraeus. he says the affair ended four months ago. here is how she described her mentor to fox's tom sullivan in january. >> everybody says oh, this man is a military genius. this man is seen doing things that nobody else has ever done before. true? >> he is quite a genius. because i think he is able to balance so many different levels of thinking. i don't think all seen ror

military officers do. there are many others who do but i don't think all officers have the skill. >> the f.b.i. became aware that the c.i.a. director mistress was sending harassing e-mails from several dummy accounts to this woman. jill kelly. petraeus family friend who lived in tampa, florida. kelly's family spent holidays with david petraeus and his wife holly. the f.b.i. became concerned an attempt was being made to blackmail the c.i.a. director and confronted him about the affair within the last six weeks. it wrapped up his investigation with broadwell's second and final interview. four days before the election. petraeus submitted his resignation to the president thursday. two days after the election. and a week before he was to testify on capitol hill, in closed door intelligence briefings about benghazi. he no longer plans to testify. there are concerns that broadwell may have revealed secret information about the benghazi investigation that she gleaned from her relationship with petraeus.

>> i don't know if a lot of you heard this, but the c.i.a. annex had actually take an couple of libyan militia members prisoner and they think that the attack on consulate was an effort to try to get the prisoners back. this is still being vetted. >> well-placed washington source and two security contractors in benghazi tell fox the libyan militia men held at the c.i.a. annex may be a possible motivating factor for the attack. the c.i.a. denies it had prisoners. the c.i.a. has not had detention authority since january 2009 when the executive order 14391 was issued. any suggestion that the agency is in the detention business is uninformed and baseless. >> the resignation comes at a time when the administration is facing questions about the attacks of benghazi. affair had been suspected against petraeus' inner circle three. separate sources say the top counterterrorism advisor john brennan was told about the affair in the summer of 2011.

white house denies this. >> bret: they strongly deny it. jennifer, i understand we received reaction from the secretary of defense leon panetta about general petraeus resignation. what can you tell us about that? >> he was en route to reporters and said it was a sad situation to have a established career end in this manner. my heart obviously goes out to hip and his family. but i think he took the right step and i think it's important when you are director of the c.i.a. with all the channels that face you in that position. >> he was then asked as a former member of congress how he felt about congress not being informed about the f.b.i. investigation. to which he said, "that is another issue i think we ought to look at, because as a former director of the c.i.a., working closely with the intelligence committees you know i believe there is a responsibility to make sure that the intelligence committee are informed of

issues that could effect the security of those intelligence operations. >> thank you. in a city where keeping secrets is next to impossible many national leaders had no idea of the petraeus affair until shortly before you heard about it. >> catherine herridge on how the investigation played out. >> although the investigation began in june, the chair and ranking member of the house and senate intelligence committees were not notified that the c.i.a. director and his aed lover had fallen within the scope of an f.b.i. investigation. >> we received no advanced notice. it was like a lightning bolt. >> half dozen hearings abz briefings scheduled on benghazi, abling c.i.a. director mike morrell is expected to take general petraeus' place. lawmakers say their options are open and they intend to ask petraeus to voluntarily appear as a private citizen, or if necessary use subpoena power down the road.

>> i don't know how you assess benghazi if he doesn't testify. >> the dianne feinstein's peep over the failure to notify congress means the benghazi scandal can no longer be pinalen holed as republican issue. >> are you going to investigate why the f.b.i. didn't notify you before? >> yes. absolutely. >> this could have had impact on security. >> they point to title thatgone defense issues and 413 and 413a dealing with the notification. it reads in part, "shall keep congressional intelligence committee fully and currently informed of all intelligence activities." >> the question is whether it qualifies in intelligence activity in meaning of the statute. if you look at statute of the prism of the purpose to keep the relevant congressional committee informed this is something highly relevant to committee oversight function.

>> the f.b.i. director mole mole an then eric holder. >> the attorney general, relevant congressional committee. in some cases the attorney general might want to loop in the white house so they're not caught off-guard by disclosure. >> the administration stated timeline is holder knew about the investigation in late august but the director of national intelligence, and the official learned that it's two months late evidence at 5:00 p.m. last thursday, they went to see the both to offer a resignation. less than a week than hearings scheduled to begin petraeus' resignation accepted. >> bret: the ainger from capitol hill about that is real? >> it is real.

>> they said to fox if they had known he was within the scope of f.b.i. investigation they would have seen the statements and the actions in september through that optic. that is important. it's wedded to the administration line that doubt benghazi was anti-islam video. a demonstration that spun out of control. in conflict with what the f.b.i. and national terrorism center briefed lawmakers. >> bret: thank you. the looming fiscal cliff now. 50 days from today. wendell goler tells us this is a big week to avoid going over. >> a week after the election as the public endorsement, they are turning to congress to have a mix of spending cut and tax revenue to avoid deeper cut and taxes to trigger a new recession. >> majority of americans agree with my approach. democrat, independents and some republicans now. we need majority in congress to listen.

>> he will hold a news conference to warn of the danger looming beyond the fiscal cliff. boehner rejects the idea of letting the bush administration upper income tax cut expire. >> instead of raising tax rates on american people and accepting the damage it will do to the economy, let's start to solve the problem. >> focus on tax reform to closeer the loopholes and lower tax rate. >> tax reform in seven weeks before the end of the year is a tall if not impossible task. some lawmakers want to buy time. others don't believe lowering tax rate raises revenue. >> fairly tell. we need the republicans to do in 2012 what we did in 2010. we hear the mandate. continue to cut spending. they have to hear the mandate. >> the players haven't changed but instead of huddling around the table in the cabinet room as he and congressional

leaders did in failed negotiation last year, the president may hold series of post thig rally to lock in the bush administration middle income tax rate, that conservative commentator bill crystal suggests is a no-brainer. >> it won't hurt the country if we raises a little bit on millionaires. it won't. >> why would they fall on the sword for millionaires half of whom live in hollywood and vote democratic anyway. even republicans willing to accept higher taxes on wealthy says it doesn't fix the problem. >> the problem is entitlement spending. >> he says they should share the recommendation shared by simpson-bowles. there is not much time left to work things out. >> wendell goler live on the north lawn. do you think congress should raise the taxes on millionair millionaires? let me know on twitter.

the stocks were mixed to open the week. dow lost a fraction. nasdaq last half a point. new heading to the twitter verse. you should pay attention. that's later in grapevine. up next, is israel getting involved in syria civil war? beef, meet flavor boost. flavor boost, meet beef. it's swanson flavor boost. concentrated broth to add delicious flavor to your skillet dish in just one stir. mmm! [ female announcer ] cook, meet compliments. get recipes at flavorboost.com.

>> bret: iran is trying to give the u.s. and israel something to think about, as tensions escalate over the nuclear program. iran is conducting large scale air defense drills featuring jet fighters, drones and about 8,000 troops. the week-long exercise covers the entire eastern half of iran. there are fears tonight that syria's civil war could suck in israel and the long list of enemies and blossom in to a conflict. leland vittert is in the expanding war zone tonight

reporting froreporting from then heights. >> from the israeli controlled golan height you can see the civil war rage on in villages below. second day in a row, the martyr from the fight exploded within israel. it comes in a week of other mortars landing near a small israeli town. with the tank on high alert, israel fired back reporting a direct hit on the mobile artillery. both side complain to the peacekeepers. an agreement that dates to the 1973 yom kippur war. as recently as 2010, secret negotiations between israel and syria discuss giving back the golan in exchange for a peace treaty. the abbott regime protest -- anti-regime protest that morph to zil war makes thoughts of peace a distant memory. israel fears a situation like

that on the syria border with turkey, where just toe thousands of refugees cross escaping the violence and rows of barbed wire carrying their injured children. >> overhead, the sound of syrian fighter jets with the stronghold inside the border. on the ground, the street to street battle continues. the growing number of foreign fighters joining rebel ranks. means israel worry its border could turn in a prime target or well armed jihadists to launch attacks against the jewish state. for almost four decades the syrian-israeli border has been calm. if anything over the past 24 hours israel responded with great restraint but say not to mistake it from lack of re. they don't want to take sides in the syrian civil war but will fight to protect every inch on this side of the border. bret? >> bret: leland vittert in

the golan heights. thank you. israeli jihad militants release the video saturday rockets being fired from gaza strip to what is presumed southern israel. israeli airstrike killed a militant and wounded two othe others. satellite imagery indicates north korea testing rocket engines and american academic institute says it is a sign the country continues to develop its long range ballistic missiles. analysis on the satellite images taken recently as september april, they launched a rocket to failed attempt to propel satellite in space. in this country residents of the northeast battle aftereffect ostwo of weather events in the past two weeks. new york's governor is asking

for $30 billion in federal disaster aid. jonathan hunt tells us help can't come fast enough for those still in the dark. >> how long have you lived here? >> 50 years. >> 50 years? >> 5-0. >> tom is one of the many residents who lost everything. flood and fire ra advantaging the neighborhood. destroying home after home. tom like most here says he will rebuild. but there can be little rebuilding without power. getting the power back is taking a lot longer than anyone wants. long island power authority says it is doing its best. but 29,000 still don't have power on the rockaway peninsula home to 130,000 in total. crews from phoenix, arizona, are here to help. but those nil dark say it's not enough. >> we have no light, no heat. >> barry was at a help center

set up by a local church to get clothes for her grand children. >> he lost all of his toys and his books. somebody gave him a new book bag because he lost his book bag. >> the church is also the base for food supplies and medical help. volunteer doctors say the city a state officials are not doing enough. >> i'm here alone. i am here with volunteer doctors and volunteer nurses. i haven't had any input from the city or the state so far. >> the recovery is slow, too. in hard-hit staten island. >> trying to be helpful, but so far we don't have actual help here. >> the red cross has been criticized for its role in what some see as lackluster recovery effort. but the officials with the organization defended themselves today. calling their operation nearly flawless. one bright spot for new jersey residents today, the announcement that gas rationing is finally ending. >> back here in bell harbor,

there is a sense of weary frustration at the local and the state officials. feeling that the recovery will best be brought about simply by neighbor helping neighbor. bret? >> jonathan hunt live bell harbor tonight. thank you. still ahead, how much democracy is too much? first, was the turn-out for last week's election too good to be true? [ male announcer ] they're here! the hottest new machines of 2013, just in time for the polaris holiday sales event. get financing as low as 2.99% on all polaris atvs and side-by-sides including the new twenty-thirteens. plus rebates up to one thousand dollars on select twenty-twelves. incredible deals on... legendary sportsman... powerful rangers... and razor sharp razors. financing as low as 2.99% and rebates up to one thousand dollars ends december 31st. get all the detas at polaris.com.

>> bret: you heard it many times prior to last tuesday. turn-out decides elections. in some places the reported turn-out was so high it is drawing attention. chief washington correspondent james rosen has the story. >> philadelphia fever burned so intensely for president

obama last tuesday it nearly broke the thermometer. in 20 of the city's 66 wards president won 97% of vote. with minor rounding up we could say in 13 philadelphia wards mr. obama captured 99%. "philadelphia inquirer" reports that g.o.p. nominee mitt romney failed to garner a single vote in 59 of the city divisions. subsets of wards where 700 people could be registered to vote. >> i think the people voted the way they believed in. the polling across the nation showed that the african-american community was supporting the president by 98-99%. >> in ten of chicago 50 wards, largely inner city, the president likewise captured 98% of the vote. some parts of philadelphia witnessed turn-out rate exceeding 90%. arousing suspicion that something other than brotherly love was at work. >> in some precincts in philadelphia you will see as they finish the, you know, the official count, i think you will see places where there

are many people voting in a precinct than signed in at the poll book. >> i don't find it hard to believe there are neighborhoods in the united states that president obama got 97 to 99% of the vote. the turn-out level strikes me as suspicious. philadelphia has been a administration that had irregular election procedures in the past. >> nor is philadelphia the only city where the numbers are raising eyebrows. in st. lucie county, florida, incumbent republican congressman allen west is crying foul over a limited recount of early voting that shrank the total numbers for west and his victorious democratic channeler murphy. murphy remained ahead by .57% enough to escape automatic recount of the all votes cast in three county that the district encompasses. >> i have seen there are some errors made there. at least there is reason to believe there might have been. this is a democratic county in a republican part of florida.

>> weekend recount action in florida did reverse results of a mayoral race in fort pierce with a new verdict so close it triggered another recount. sunshine state automatic one. >> bret: thank you. authorities in indianapolis still don't know what caused an enormous blast that killed two people and danieled 80 homes -- damaged 80 homes. the coroner's office have not identified the bodies from saturday's explosion, rather. owner of the house at the center of the house say think think it was a faulty furnace. that may be to blame. the post election honeymoon ends quickly for president obama but that isn't stopping a news anchor from comparing the current president to one from the past.

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call... and lock in your rate for 12 months today. liberty mutual insurance. responsibility. what's your policy? >> bret: fresh picks from the political grapevine. socialist president of venezuela is using president obama's re-election to publicly criticize him. chavez who criticizes u.s. military involvement and the world says he should dedicate himself to governing his property and dividing other nations. while many foreign leaders called the to the congratulate him. one was more than just well-wishes. mahmoud abbas told president obama he is intent on going forward with the palestinian bid for united nations recognition, despite u.s. opposition. only time will tell how the

obama presidency will be judged by history. but one cable news anchor is already making a lot ofy comparison msnbc host chris jansing is noting perceived similarity between the challenges faced by president obama and abraham lincoln. chancing said to actress gloria reuben who co-stars in the current movie about lincoln, quote: you have a president who is newly elected, who faces a divided congress and a divided country. you must find these parallels fascinating. news buttsers write, quote: couldn't such a vague analogies be made of many presidents, including george w. bush. pope benedict vatican department promoting the use and study of latin. the language may be ancient but the 85-year-old pontiff will have modern outlet fits in anything in 140 characters. pope benedict will have his own twitter handle. why the end of the year, tweeting latin verses and

phrases add infinitum. a city in chiefly could be emerging from one fiscal crisis by inviting another. correspondent claudia cowan looks at the vallejo where the question is is how much democracy is too much? >> how would you spend $3 million? >> bringing back the vallejo blues and heritage festival down along the water front. >> involved, vallejo residents are pitching up ways to voter approved tax hike they can spend however they want so long as it benefits the community. >> i would like to see it concentrated on his parts. >> i would like more to go for the youth centers. >> others say more streetlights are needed given the high crime rate in a city just now emerging from federal bankruptcy. the best, most cost-effective ideas will be put on a city-wide ballot in may. viejo residents 16 and up will pick their favorites. then the city council have have its say on how the 3 million will be spent. participate pear in chicago and new york city.

first time on a citywide level to the mayor's regret. >> i have no problems with creativity. but now is not the time to be creative. >> davis said in a city struggling to get back on its feet tax dollars should pay for critical needs. that's it. if you talk to the public they say we want public safety. we want our streets fixed. we want building and ground. we want service. we're not doing that. >> supporters of participatory budgeting say the winning project may include some the mayor's priority. >> when you give people a chance to meaningfully participate and actually solve problems, they really step up. and they really make great decisions. >> other struggling cities are watching closely to see in vallejo can engage its residents in a way no other city has by giving the people more of a say. bret? >> bret: claudia cowan in san francisco. thank you. two more executives are out, at least temporarily in the

ongoing scandal at the bbc. today, the director of news and her deputy were removed. sunday, the evidence the bbc resigned. the broadcaster is reeling after the forced redistraction of sexual abuse allegations against a politician combined with the bbc's failure to report on child sex allegations against one of its biggest stars, the late jimmy saffle. it's not just a soap opera. it's national security. the david petraeus affair. the investigation, the fallout, and the upcoming benghazi heergs. we'll talk about it all with the fox all-stars when we come back. meet the 5-passenger ford c-max hybrid.

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>> now, i don't know if a lot of you heard this but the cia annex had actually had taken a couple of libyan militia members prisoner and they think that the attack on the consulate was an effort to try to get these prisoners back. that's still being vetted. challenging thing for general

petraeus is that in his new position is he not allowed to communicate with the press. so he has known all of this. they had correspondence with the cia station chief in libya. within 24 hours they kind of knew what was happening. >> bret: that's paula broadwell speaking at denver university october 26th. she is the biographer who is said to have had an affair with david petraeus, that led to his resignation as cia director. she is talking about about benghazi and the terror attack that killed the ambassador in libya and three others. she is talking also about people being held at the cia annex, libya militia men we have a couple sources three actually saying militia men were at the cia annex being held there. that may have been possibly a moat violating factor footer terrorist attack. the annex itself may have been the target.

that wassen when you of the possible scenarios they were looking at at that terrorist attack. the cia put out a statement after that reporting. the cia has not had detention authority sips january of 2009 when executive order 13491 was issued. any suggestion that the agency is still in the detention business is uninformed and baseless. so let's bring in our panel about this. bill kristol ed ever to of the week "weekly standard" and a.b. hill. >> i should point out that broadwell points out that the petraeus spoke to the station chief within 24 hours. the station chief as reported said it was a terrorist attack within 24 hours. petraeus briefed lawmakers on capitol hill behind closed doors saying it was the anti-islam video and spontaneous attack. >> that's the mystery. that's where all of this ultimately leads. this is why a sex scandal that

the mine stream media have embraced but it leads to the story that they inignored. how do you explain the testimony that petraeus gave when it contradicted what the cia chief, station chief in libya had told him, when it contradicted what panetta had briefed and what everybody at the time was saying. now, the broadwell disclosure that we just saw is important. not because its people are now getting all upset about it. might have disclosed secret information. but because it might tell us what might have been a motive for the cia to disguise, to lie about, to cover up what was happening in benghazi. if they were holding prisoners, either the administration or 00 white house knew about it in contradiction of the executive order obama had done when he came into office. or, the cia and the people in libya were holding it from the administration in which case it's a breech of something and it could be serious. it gives you one of the many

motives why petraeus' testimony was so at odds at what everybody at the time was saying and knew. and the fact that petraeus resigns with a week to go, before he is supposed to testify will not be there as many people on the hill have already said, we have got to have him there, including dianne feinstein, i'm sure, being a democrat and, therefore, being obviously nonpartisan about this they're going to want to know where did this testimony come from. that's the link between the two scandals. i'm not interested in the private lives of high officials. i'm interested in what happened in benghazi and why the story out of the cia was so bizarre. >> bret: a.b. the other store is when the fbi knew and the president knew. the time line they have is the president was informed after the election and thursday and that general clapper, the director of national intelligence, found out in a phone call on election day and told the white house on the day after the election.

the fbi had been investigating for at least wreaks. >> months. >> i don't know if we are going to learn that's not true. we can deal with the questions. she it said he thought it was a terrorist attack. he went into closed meetings saying it was a video. perhaps he was doing it to protect the cia. i believe is he going to testify on capitol hill compelled by his own sense of duty or a subpoena. i think we are going to hear from him. the time of the election and sex scandal are not really important as much as what happened on the ground in benghazi, was there some kind of coverup to protect the cia and why would mike rogers, chairman of the house intelligence committee and dianne feinstein chairman on the senate side not be informed of an ongoing investigation. >> bret: that's where i was getting to. the fbi is investigating.

dianne feinstein calls it a lightning bolt this weekend. she didn't know about it. and the intel chairs didn't know about it. bill? >> what strikes me the most is broadwell gives this speech october 26th. she was talking about how general petraeus or director petraeus is reacting to it on september 11th to september 12th, right? she seems to know. i mean she says she knows. maybe she is making it up. she seems to he know more than is publicly available, i think, about what the cia's station chief told the cia director on september 12th. let's look at the official time line in this event. the official time line is that the ar. affair had long ago ended. official time line general petraeus had been rather angry that mrs. broadwell was harassing this third woman, other woman. the whole thing is over. what is the truth? what struck me most watching that clip is that it seems that broadwell is still in touch. i don't know, with petraeus or maybe she is just making it up. she needs to be asked these questions and it really araises to me about the time line we are being given on

background and mainstream's media caring about when the affair began, when tended. who knew what, when, how the fbi just happened to come upon his preference in these emails through someone referred, if you get a couple of harassing emails. you just call up the fbi and suddenly you have got david petraeus. then they tell eric holder and they don't tell the white house. there is so many questions about this time line. i hate to say this. i don't like to say that the u.s. government is misleading us. the time line is significant because she seems to suggest that she has not talked with petraeus, communicated with petraeus since september 12th which is not consistent with their time line. >> bret: charles? >> what's troubling to me and dianne feinstein is the time line over disclosure. the fbi is looking into the possible compromise of national security at the it highest level the keeper of the secret could be the subject of blackmail or computers would be

compromised. and they hold all this information inside? at what point was the head of the fbi told? did he tell the attorney general? when was he told. every time you read the headlines it's always several months ago. vague allow people to fudge who knew when. it's almost inconceivable that the white house at some level wouldn't have known about. this if they know about this, then they are in a position exert influence over petraeus that could result from all kinds of things. this goes way back to j. edgar hoover. he knew the secrets on everybody in town and he had something on everybody in town. who knew what and who told whom in this fbi investigation and why does the chairman of the committee who should know about this right away learns what everybody learns at the very end three days after election day. that is not credibility.

rationalize complete their investigation there were no classified documents compromised that petraeus was not leaking classified information. if you listen to what she said on october 26th. they actually came -- they concluded it didn't happen but it probably did. >> that's illogical. at a time when they weren't sure whether there was a compromise of national security, ie at a time when there could have been a compromise, that's exactly when you want to notify the people in congress and the higher ups. it's completely illogical excuse, it goes the other way. >> bret: there are many shoes left to drop. we will be there to catch them. next up, trying to back away from the fiscal cliff. [ male announcer ] when was the last time something made your jaw drop?

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we can't just cut our way to prosperity. if we're serious about reducing the deficit, we have to combine spending cuts with revenue, and that means asking the wealthest americans to pay a little more on taxes. >> instandarded of raising tax rates on the american people and accepting the damage it will do to our economy. let's start to actually solve the problem. let's focus on tax reform that closes special interest loopholes and lowers tax rates. >> we need the republicans to do in 2012 what we did in 2010. we hear the mandate, continue to cut spenting. buff they have to hear the mandate. real revenues. >> no republic will vote for higher tax rates. we will generate revenue from elim nalgt deductions and loopholes. >> bret: we have 50 days of that to come. a.b., the fiscal cliff. you hear the line in the sand all right. tax rate, revenues. we heart buzz words. so, can democrats be happy with closing loopholes and not raising the top tax rates?

can republicans be happy if the cuts are not significant entitlement reform before the end of the year? >> well, the numbers have to add up. so it's going to depend on what kind of numbers you are looking at. if enough deductions are eliminated and capped. and you find enough revenue perhaps you can avoid. >> bret: you can do it? >> a rate cut. people are speaking very generally as you notice now. >> bret: amazing how governor romney did that it didn't go over too well. >> people are being very generic about this because they still -- what they want to do right now is speak past each other and say we are willing to cooperate and we are willing to compromise. and then they double down on their position in the same sentence. because, it's a starting point for negotiations. so you don't bring your end point to the negotiation. is, we're going to hear this and there is not going to be any movement until after thanksgiving. but we -- you hear from republics is no movement on rates. but they are willing to find revenue other places.

what democrats have not done is offer what they would put in exchange for the sequester cuts on the table. haven't heard anything about that they might think taxing millionaires is going to get threw. but it doesn't sound like it. >> sequester cuts, across the board cuts, including defense cuts that many lawmakers have a real problem with both sides of the aisle. >> in contradiction to one of my colleagues. i think republicans have to hold the line on something and that is on rates. liberals are congenitally unable to understand this the difference between raising rates and raising revenues. if they give up on rates it will be rolled a rate here for a millionaire here. remember how the alternative minimum tax started in the late 1960s, aimed at 600 millionaires. now it gets tens of millions of people in its net. so, i think they have got to hold the line. obama a mandate but the republicans who have the largest success in 2010, the largest gain of seats since the late 1940s also have a

mandate. i think that is to hold the line on rates. it makes no sense at all to raise rates which will retard economic growth when you can eliminate deductions which are unfair and in efficient. >> bret: okay, you have got a lot of ink for something you said on "fox news sunday" yesterday. we had to go back to the it archives just to pull up something else. and we wanted to play both things back to back. >> the administration is going to raise taxes on those who pay the majority of taxes in this country. on the wealthy and on those who have dividends and interest income. dividends and capital gains income. that is one of the stupidest things you can do in the middle of a deep depression where everyone is pulling back and no one wants to invest. let's have a serious debate. don't scream and yell where one person says you know what it won't kill the country. it really won't. i don't understand why republicans don't take obama's offer to freeze taxes for everyone below 250,000. >> bret: all right. there you have it. so.

>> two separate points. the first tax rates expire on december 31st. rates are going up for everyone, if nothing happens. if you think republicans can win a showdown on preserving all the current bush tax rates against a president just reelected and gained seats in the senate and the house on just millionaires. good luck. i prefer this as a policy outcome. i don't think it's winnable. i think in the end the republicans will cave. do you cave right thought and get it out of the way. 4% do it for a year little tax hate on the millionaires. get it out of the why is we can can fight about tax reform the big deal that has to happen next year or republicans will cave on december 29th. actual empirical matter. what were the fastest. >> i think '83 to 86 what were the top marginal tax rate. 50%. honestly 35 to 389% by itself is not going to cripple the economy. president obama's proposal. he ran on it let him implement it. if things slow down it's his fault and that's fine with me.

i hope things don't slow down i hope we get reeling tax reform in 2014. i'm pulling the archive tape for you, charles. stay tuned for a special veterans day close to our program. where others fail, droid powers through. introducing the new droid razr maxx hd by motorola. now more than ever droid does. he loves risk. but whether he's climbing everest, scuba diving the great barrier reef with sharks, or jumping into the market, he goes with people he trusts, which is why he trades with a company

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>> bret: veterans day was sunday. today it's being ontd as a federal holiday. steve centanni on one wounded warrior is getting much needed help that hits home. >> it's a homecoming marine sergeant john peck never expected. a motorcycle motorcade. speeches. giant flags. and the keys to a brand new house paid for by two benefactors. the stephan siler tunnel to towers foundation named in honor of a 9/11 first spawnder and gary sinise foundation created by the actor and veterans advocate. sergeant peck very nearly gave his life to our country. suffering injuries in iraq and afghanistan and came home was

a quadruple amputee. >> i real delay not find myself a hero. i find the people who did not come back. >> and peck paid tribute to one marine buddy in particular. >> he was one of the strongest marines i have ever met. and to this day, i miss him dearly. >> along with his mother lisa, a wounded warrior herself. john peck comes home to a 25 square foot smart house built especially with him in mind. this house is full of high tech features to make it more accessible for sergeant peck. for instance, this switch here you just push it down or do it on your ipad and the kitchen cabinet comes down to wheelchair level. >> other houses like this are being planned for the 55 triple and gawmed am pee tees in iraq and average. why did he want to return to the battlefield after his first injuries. >> it's that brotherhood. that love for each other.